Maharashtra to set up Mahainfra — an infra SPV to raise Rs 1 lakh crore

The Maharashtra government has drawn up plans to set up a special purpose vehicle (SPV), Mahainfra, which will raise about ₹1 lakh crore for funding infrastructure projects. The funds would be raised in the next five years for the infrastructure development. Given the constraints in raising such huge amounts, alternative methods, including tapping international funds, would be used, said state Finance Minister, Sudhir Mungantiwar while presenting the budget in the assembly. The Mahainfra is proposed to act as a single window for aggregating the land held by various departments for securitization, which are neither in use nor expected to be developed by the holding department for the next 10 years. The land will be escrowed to the SPV for generation of funds. Securitization of the land will aid in raising funds through low-cost loans, bonds and investments from large investors with long-term horizons such as national or international pension and insurance funds. The government will also recruit a team of subject experts from various fields for increasing the efficiency of the institution. The government is also exploring the possibility of converting the Mahainfra into a non-banking finance company (NBFC) on the lines of Gujarat State Financial Services Ltd (GSFS).